Almost every homeowner has homeowners insurance, because
the lender that provides the mortgage requires it. Many
renters, however, do not think about insurance on their
personal property or liability insurance. Some renters
erroneously assume that the landlord's insurance would
cover their property loss in case of a fire or other
disaster. Typically, the landlord or property owner only
carries insurance on the dwelling itself.

Most renters need coverage on their possessions in
the event that they are destroyed by fire or other
disasters, or liability coverage in case their actions
cause bodily harm or property loss for someone else.

Renters insurance (HO-4) policies give a wide range
of coverage for both personal property and liability. A
renters policy insures the contents inside the
building--typically providing personal property
protection for the same risks and perils as an HO-2
homeowners dwelling policy--but it excludes coverage for
the dwelling and also personal property coverage for
damage caused by glass breakage.

Brenda Procter, M.S., Consumer and
Family Economics, College of Human Environmental
Sciences, University of Missouri-Columbia

If you'd like to learn more about this and other
personal finance topics, the University of Missouri
offers 'Personal & Family Finance,' a correspondence
course, through the Center for Distance and Independent
Study (800-609-3727). Information about this course is
available at
http://cdis.missouri.edu/CourseInfo/DetailCourseInfo.asp?1985.